What is a secure business credit card
A secure business credit card is a commercial credit card backed by a deposit. Before being approved, the applicant needs to deposit money in a bank account and will not be able to use it while the account is opened and kept safe. The cardholder’s credit limit is equal to the deposit amount. When the account holder closes a reputable account or is determined to be eligible to upgrade to an unsecured card, the deposit must be refunded.
How does a secure business credit card work
A secure business card is just like any other credit card, but with one main difference, your credit limit will be determined by the amount you deposit in your deposit account to ensure the credit limit.
Can a Secured Business Credit Card Create Credit
Yes. Payment records and other related information secured by commercial credit cards are typically reported to at least one of the major credit bureaus. This means that a good payment history will improve your credit, but it also means that skipping payments or missing appointments will lower your credit score.
What is the difference between a secure and an unsecured business credit card
The bank will determine your credit limit. A secure credit card requires a deposit and your credit limit is the same as the deposit. Security cards generally do not offer the same perks, perks, and rewards as unsecured cards.
Which Banks Offer Secure Commercial Credit Cards
Some banks offer secure commercial credit cards. Of these, only Wells Fargo and Union Bank offer secure commercial credit cards.
How to choose a secure business credit card
- Try to avoid the annual fee.
- Check the minimum and maximum deposit amounts. Check the minimum deposit amounts to ensure that there is cash available to deposit. If you only have one card that you want to withdraw from a secure card, make sure that it does not exceed 30% of the total amount you want to deposit. This avoids excessive credit amortization and as a result, has a negative effect on credit score. Also, even if you plan to exceed the recommended 30% credit usage, make sure that the maximum deposit does not become a limiting factor for the overall cost.
- Make sure to send any card you’re considering to the three credit bureaus. The value of a secure credit card is an opportunity to build credit, so it is essential to ensure that your card reports your moment of credit to all three credit bureau agencies. The two cards on this list report your payments and credit bureau balances.
Check the fees and read the fine print. Check hidden fees in small font. Some secured credit cards charge an application fee, an annual fee, and often a monthly maintenance fee. The cards on this list are free of hidden fees, which is a big part of why we chose them and not the other cards we reviewed.
The Best Secure Business Credit Cards
Wells Fargo Business Secured Credit Card
- Wells Fargo Business Secured Credit Card is the best choice for those looking for a secure business credit card due to a lack of options.
- Rewards: 1.5% cashback on dollars spent on qualifying purchases or 1 point per dollar and receive 1,000 bonus points when the business spends $ 1,000 or more during the monthly billing period
- Annual membership fee. $ 0
- Other advantages and disadvantages Wells Fargo Business Secured Credit Card requires a minimum of $ 500 credit but allows a maximum of $ 25,000. As a security card, you will need to deposit an amount equal to the credit limit to the account. Cardholders can add up to 10 employee cards for free and benefit from zero overseas transaction fees. Like most secure card issuers, Wells Fargo allows you to periodically review your account and upgrade to an insecure business card when you feel responsible enough for yourself and your business.
BBVA Secure Business Visa Credit Card
- Although the BBVA Business Secured Card is only available to potential cardholders residing in multiple states, it is an attractive option for those who qualify.
- Rewards: 1.5 points per dollar spent on qualifying purchases
- Annual membership fee: $ 40 (the first year waived)
Related Apps: Wells Fargo Secured Credit Card